Newmont Corporation's (NYSE: NEM) shares have rallied 24.8% in the past three months, outperforming the Zacks Mining – Gold industry's rise of 12.4%. Forecast-topping earnings performance in the second quarter on the back of higher selling prices and production, along with a surge in gold prices, has contributed to the run-up in NEM's shares.
The stock is currently trading at a roughly 6% discount to its 52-week high of $53.88, reached on Aug. 30, 2024.
Technical indicators show that NEM has been unremittingly trading above the 200-day simple moving average since April 23, 2024. After a series of ebbs and flows, the stock broke the 50-day SMA on July 3, 2024. Following a golden crossover on May 13, 2024, the 50-day SMA continues to read higher than the 200-day moving average, manifesting a bullish trend, with the 200-day SMA acting as the support level.
Newmont's Shares Trade Above 50-Day SMA
Image Source: Zacks Investment Research
Is the time right to buy NEM's shares for potential upside? Let's take a look at the stock's fundamentals.
NEM Stock Well Poised on Key Projects & Newcrest Buyout
Newmont continues to invest in growth projects in a calculated manner. The company is pursuing several projects, including Tanami Expansion 2 in Australia, the Ahafo North expansion in Ghana and Cadia Block Caves in Australia. These projects should expand production capacity and extend mine life, thereby driving revenues and profits.
The acquisition of Newcrest Mining Limited has also created an industry-leading portfolio with a multi-decade gold and copper production profile in the most favorable mining jurisdictions globally. The combination of Newmont and Newcrest is expected to deliver significant value for shareholders and generate meaningful synergies, with $500 million in total annual pre-tax benefits expected by the end of 2025. NEM also remains on track to meet ...
